On 1 January 1911 the transfer of the Northern Territory to the
Commonwealth government deprived Territorians of all political
representation and voting rights.[5][6][7]
The Commonwealth Constitution did not allow for Federal electorates
to cross state borders. This enabled national governments to avoid
a hypothetical impasse where a thousand Territory voters might some
day hold the balance of power in an evenly divided Commonwealth
Parliament.[8] Of
the 4.5 million white Australians living on the continent, only
1,729 lived in the Northern Territory, along with about 1,300 Chinese and an
unknown number of Aborigines.[9]

Following the transfer, the Northern Territory was run by an
administrator appointed by the Commonwealth executive, a public servant
answerable to the Commonwealth. In the years following Commonwealth
Administration, Territorians became increasingly unhappy with
unrepresentative government from southern Australia.[10] The
Northern Territory's few economic pursuits—pearling, pastoralism, and mining—were all run down. Expected
Commonwealth-led development dissipated as Federal funding was
diverted towards Australia's participation in World War I.[7]
Consequently, conflict between labour unions and the Northern
Territory administration began to grow.[6][9]

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Dr. John A.
Gilruth

Dr. John A. Gilruth arrived in Darwin in April 1912, after Prime MinisterAndrew Fisher
invited him to join a scientific mission to investigate the
potential of the Northern Territory.[11]
He was later given the position of Administrator of
the Northern Territory.[12]
Gilruth's appointment sparked his enthusiasm for economic
development of the Northern Territory by means of "mining,
crop-growing and pastoralism".[11]

From the beginning, Gilruth's plans did not progress as planned.
He did his best to promote mining and agriculture, including the
development of a meatworks in Darwin by the English firm, Vesteys.[11]
However, these attempts to achieve economic development proved
disappointing. With the outbreak of World War I in August 1914, the
Commonwealth government lost interest in development of the
Northern Territory as Federal funds were diverted towards the
war.[7][13]

As a consequence, the weight of public frustration fell upon
Gilruth. However, his own character and actions helped to bring
about that result. His blunt, dynamic style of leadership was seen as
being arrogant, insensitive[13]
and "not fitted to rule a democratic people".[11]
He went to Darwin predisposed "to treat the Chinese with reserve,
the Aboriginals with heavy-handed paternalism and the white trade unionists
with suspicion".[11]
Gilruth constantly clashed with trade unionists, employers, workers
and even his own officers.[6]
With Gilruth hindered by the Commonwealth government, "which
neither gave him the powers he needed to rule effectively nor
evolved consistent policies for the region", a confrontation
between his administration and the townspeople was inevitable.[6][11]

The 1913
strike

The construction of the railway line from Port Darwin
to Pine Creek in the late
1880s required the immigration of Chinese labour. In December 1888,
the South Australian Chinese Immigration Act came into
effect, effectively putting a stop to the immigration increase.[14] Those
Chinese workers already in Darwin had proved themselves reliable,
hard-working and good citizens.[15] After
the decline of the gold rush, the Chinese
population competed for jobs with the White population. Not only did Asians
compete successfully against Europeans for jobs that were scarce,
but they also diversified into other profitable areas such as
vegetable growing and tailoring. Subsequently, the retail trade was
almost entirely in Chinese hands and their success was resented by
Europeans.[16][17]

Early Chinese influence in Darwin

Given the option, most employers preferred to employ Chinese
workers, not necessarily because they were cheaper to employ, but
because they were more reliable.[16]
The problem faced by unskilled European labourers in the Northern
Territory was that no-one cared about their situation. "Local
employers did not want them, the South Australian Government was
indifferent to them, and since they were not unionized, their
comrades in southern Australia ignored them."[16]

On 9 January 1911, the Fisher Labor Government issued a
Ministerial instruction to implement the White
Australia policy.[18] With
the threat of Chinese competition reduced, European workers were
able to bargain for higher rates of pay. Needing an organisation to
represent workers' interests, the Darwin Australian Workers' Union
(AWU) came into existence in 1912. Gilruth was given a free hand to
deal with the situation in Darwin and arrived in the midst of a
long pay dispute involving wharf lumpers and shipping agents. AWU
representatives met with Gilruth several times in 1912 and 1913,
but little was resolved.

When the government lowered the wages of survey field hands in
April 1913, the AWU conducted a secret ballot amongst its members,
which overwhelmingly supported a general strike commencing 28 April.[6][19]
Although the Darwin strike was in itself insignificant, the threat
of widespread national disruption if Chinese labour were used to
keep the northern port operational, was significant. After weeks of
strike action, the union reserves were empty of strike funds, the
parent AWU in Townsville hostile to the whole event, the
Federal government indifferent and a number of strikers back at
work, it was evident that strike action was lost. In late May, AWU
representatives met with Gilruth to negotiate their terms of
surrender; the unionists were prepared to return to work as long as
the strikers were reinstated to their former positions. Not content
with his devastating victory, Gilruth refused, "wanting to
eliminate all traces of unionism in the Northern Territory".[16]
Although the strike was called off in the first week of June, it
shaped future industrial relations in the Northern Territory, as
the "White Australia" policy and anti-Chinese feeling fuelled
support for the Unions.[13]

Vesteys
meatworks

Gilruth had correctly envisaged that, for the foreseeable
future, large-scale private enterprise in Darwin would be based on
the mining, agriculture and cattle industries.[20] The
large British conglomerate, Vestey Brothers, proposed setting up a
meat processing plant in Darwin and work commenced on this in
1914.[21] An
analysis of the negotiations suggested that neither the government
nor Vestey Brothers were fully confident of the success of the
venture they were about to undertake. It also showed that Gilruth,
as the middleman, was thoroughly influential in its outcome. It was
largely through his efforts that Vestey Brothers finally consented
to building a meatworks in Darwin.[16]

Aerial view of Vestey's Meatworks in the 1930s.

Vestey's Meatworks began operation in 1917 on Bullocky Point
(current site of the Darwin High School) in Darwin.[22]
Vesteys entry into the Northern Territory was by far the most
promising development in the history of the region.[23]
However, due to the labour shortage, workers took advantage of the
situation and obtained higher wages through regular strikes. As a
consequence, Vestey's could not make the meatworks profitable.[24] Its
temporary closure in 1917 significantly affected the already
struggling Territory economy by putting hundreds of workers out of
work.[25]
Additionally, a conspiracy was reportedly uncovered between the
Government and Vestey's regarding the illegal takeover of a large
pastoral property. Gilruth was alleged to have distributed
significant bribes, and H.E. Carey—who was both Government
Secretary and the Chief Clerk at the meatworks—was accused of collusion.[6][26][27]

It was widely thought that Vestey Brothers, with its experience
in similar ventures elsewhere and access to substantial capital,
would be able to develop large-scale cattle rearing in the
Territory without signicant government intervention. Cattle was the
one commodity that Northern Australia produced in large
numbers.[28] It
was thought that Gilruth and the Federal government fullly
supported Vestey's plans.[16]

From the time of the meatworks establishment in 1914, until its
permanent closure seven years later in 1920, Vestey's Darwin
venture existed in a vacuum filled only by the emergent Australian Workers' Union
(AWU) and by World War I. During that time, Gilruth came to matter
less and less as the AWU gathered strength under the leadership of
Harold Nelson.[16][29]

Palmerston District
Council

The Palmerston
(Darwin) District Council was established by proclamation in
1874, with representatives elected on a ratepayer franchise.[30][31] On 4
February 1915 the Minister for
External Affairs, Hugh
Mahon, decided to abolish the Council, thus depriving
Territorians of their slight vestige of democratic government.[13]
He gave as his reasons that "the District Council had blocked the
government at every move".[16]
The new council would be replaced by two representatives of the
government and two elected by the ratepayers, with Carey as Chairman.[32] In
effect, this gave Gilruth increased powers.

The abolition of the Palmerston District Council was a political
error, but at first neither the Minister nor Gilruth saw it. The
Council's importance, however, lay in the fact that it was "the
only symbol of representative government and democracy in the Northern Territory", and was
made up of a small but influential middle class of Darwin, such as shipping
agents, mine owners, landlords and ranking public servants.[16]
These were the people whose support Gilruth needed, but instead the
Minister's announcement further alienated Gilruth from the
townspeople.[6]

The Prime Minister was not concerned, as his colleagues were
about the troubles in Darwin. He dismissed the matter, saying that
it was "a healthy sign, showing that people are alive to their own
interests".[33] In
the weeks that followed the announcement of the demise of the
Palmerston District Council, support for the AWU organiser, Harold Nelson,
rapidly grew.[6]
In a time of rigid social structure, it was evident that men of all
classes united in the pursuit of a common aim. Gilruth should have
taken notice of the growing discontent, but instead chose to
distance himself even further, by moving to take over the
hotels.[16]

Nationalisation of
hotels

On 29 September 1915, an Ordinance passed by the Federal
Executive Council in Melbourne nationalised the supply of liquor
in the northern part of the Territory.[34][35] The
legislation was ostensibly aimed at Chinese 'sly-groggers' often
accused of selling low quality liquor,[13]
but in effect was designed to curb consumption of alcohol in
northern Australia and provide some revenue to the Federal
budget.[36]
Known as the 'government-takeover', penalties were steep and costs
of administration and auditing the hotels rose rapidly. There were
also some adverse side-effects with the closure of several popular
hotels[37] and
the appointment by Gilruth of a 'supervisor of hotels', at a high
salary. Consequently, the price of beer and whisky rapidly
increased.[23][36]
Gilruth had also ordered the closure of the public bar in the
popular Victoria Hotel and as a result,
the hotel was losing profits.[16]

In 1918, several station owners and businessmen abandoned the
Territory, including the manager of the State Liquor Department,
because of Gilruth's policies. However, the mistake that helped
finish Gilruth's career in the Territory, was trivial. As
Darwinites prepared to celebrate the end of the war, the girls
employed in the state hotels asked for a few hours off on Saturday,
14 November to join in the celebrations. The hotel boarders agreed
to dine elsewhere and everybody presumed the matter was closed.
However, Gilruth subsequently refused to concede leave for the
girls, who took the time off anyway.[1]
When they returned to work the next day, they found themselves
locked out by order of the Administrator.[36]
On Saturday afternoon, 7 December, there was a meeting at Darwin
Oval, attended by several hundred people, about ever-increasing
alcohol prices and the reopening of the Victoria Hotel public bar.
On 16 December, Nelson met with the Police Inspector and asked for
permission to stage a peaceful protest march from Parap to Government House.
The Police Inspector gave permission on the condition there would
be no violence.[16]

Rebellion

Demonstrators gathering at Government House on 17 December
1918.

On the afternoon of 17 December 1918, stop-work meetings were
held in Darwin and at the meatworks. About 1,000 men walked to
Government House demanding "no taxation without representation",
behind a car carrying an effigy of Gilruth tied to a stake.[38] A
deputation presented a motion to Gilruth that stated in part:

"We, the citizens of Darwin here assembled ask that the
Administrator address us regarding his administration of the
Territory of the last five years. Failing to comply, that he be
asked if he is willing to leave Darwin by the steamer and remain
away until a public commission is granted on his administration.
This meeting will guarantee him safe conduct to the
steamer...."[13]

Gilruth refused to address the crowd other than making a
statement that he was answerable to the Minister and would not and
did not recognise the citizens of Darwin as having any authority
over him. The crowd outside became tense and impatient. The crowd
demanded that Gilruth appear before them to vindicate himself.
Surprisingly, Gilruth complied but he was defiant, inviting the
crowd to gaze upon him and stating if recalled by the Minister he
would leave, but under no other circumstances would he leave his
post.[13][16]

As the crowd swelled, part of the picket fence around Government
House collapsed and union leader Harold Nelson reportedly called
out "over the fence boys".[16]
The crowd advanced across the garden into Government House. For a
few moments, Gilruth was roughly handled and abused as he attempted
to flee into the residence. Windows were broken and the wire
netting removed from the tennis court. Eventually, the crowd
dispersed, but not before they carried Gilruth's effigy to the
front gate of Government House, soaked it in kerosene and set it alight.[6]

In a subsequent letter to the Prime Minister, Gilruth
stated that "he was perfectly aware that had he promised to reduce
the price of beer (at the expense of the Australian taxpayer) the
mob would have departed peacefully. However, though this would have
been 'diplomatic,' to purchase peace at this price would have been
condemned by the Minister and the Treasury".[16]

The Government was alarmed, and within a week of the incident
the lightly armed gunboat HMAS
Una arrived to protect the Administrator. She anchored beneath
Government House cliff on Christmas Eve. Another public meeting was
held in January 1919, and a telegram sent from the meeting to the
acting Prime Minister which read:

"We, the citizens of the Northern Territory, beseechingly implore you to
recall the Administrator, Dr. Gilruth, in the interests of life and
property, as his autocratic administration is fast reaching a
grave crisis."[13]

In the weeks that followed, Gilruth and his family were virtual
prisoners within the residence. On 20 February 1919, Gilruth left
Darwin by his own accord and boarded HMAS Encounter, a cruiser
with eleven 6-inch guns and nine 12-pounder guns, still the
Administrator, but now prepared to function from Melbourne.[26][27]
His departure effectively ended what was to become commonly known
as the "Darwin Rebellion".[6][11][39]

Aftermath

Wartime censorship prevented news of the storming of Government
House in Darwin reaching the national press until the following
Thursday afternoon. The news was received with great interest. The
national press reacted in a predictable way, blaming a Soviet establishment
in Darwin to Russian aliens,
to total anarchy, to an
uncaring Federal government and Gilruth himself.[16][27]
The rebellion was described as the nearest thing to a revolution
since the Eureka
Stockade at Ballarat in 1854.[40][41]

Imprisoned at Fannie Bay Gaol for his "no taxation
without representation" campaign, Harold Nelson won the first
Territory seat in the House of Representatives in 1922 and held the
seat until 1934.[1][45]